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rules of origin

Preferential treatment provided for in a free trade agreement is usually granted only to products originating from members of that FTA, so rules of origin are important. These are the criteria which determine the national origin of a product. The country of origin of a product is usually seen as the country where the last substantial transformation took place.

Enforcing and defining rules of origin for goods or services poses major problems. This issue has been very controversial in a number of agreements and trade unions and other critics have campaigned to highlight the ways in which rules of origin can be used and abused by governments and corporations alike. In particular there are concerns about the ease with which goods processed partly or fully in a third country can receive duty-free access under a bilateral agreement by being re-exported with just enough processing to satisfy rules of origin requirements. This is further complicated by the fact that different bilateral free trade agreements use different criteria to set rules of origin.

Rules of origin regulations no hinderance, says NZ’s Goff
24-Aug-2006
Asean’s plan to narrow the gap on rules of origin regulations pose no hinderance to the proposed Free Trade Agreement (FTA) with New Zealand and Australia.
FTAs may not be worth their weight, says academic
20-Jul-2006 Bangkok Post
Thailand’s benefits from bilateral free trade agreements (FTAs) may not be worth the cost, according to an academic.
Proposed FTA with Thailand in choppy waters
22-May-2006 Financial Express
The proposed India-Thailand free trade agreement (FTA), which was to follow the early harvest programme (EHP) implemented in September 2004, seems to be in trouble. The Thai side is refusing to budge from its new demand of making the rules of origin (ROO) norms for the agreement less stringent than the norms being followed under the EHP.
Array of trade pacts a cause for concern: India Inc
26-Apr-2006
With instances of more than one trade pact being inked with a single country under the Government’s bilateral and regional trade agreements policy, Indian industry is apprehending confusion in import clearances arising from multiplicity of rules of origin' norms andnegative lists’ applicable on imports from the same country under the numerous agreements signed with it.
CII: level playing field for domestic industry
24-Apr-2006
Concerned at the spate of Free Trade Agreements being signed by Government, CII on Sunday demanded a comprehensive strategy to ensure a level playing field for the domestic industry including small and medium enterprises.
US investors seek to secure the level of rights enjoyed in their own country
7-Mar-2006
The USTR clearly stated in a negotiation report submitted to the US Congress that American investors should be able to enjoy the same rights in Korea as the ones that they enjoy in the US according to legal principles and practices.
North Korean-made sneakers may trip $29 billion US trade pact
6-Mar-2006
North Korean workers stitching Made in Korea labels on $150 sneakers may hold the key to a $29 billion free-trade agreement between the US and South Korea, the biggest US accord in a decade.
TNC fails to finalize free trade accord
16-Feb-2006
The seven BIMSTEC member countries failed to agree on rules of origin criteria and other outstanding issues, which left text of FTA accord on trade in goods undecided in Bangkok this week.
Bimstec FTA needs to cross one more river
2-Feb-2006
The proposed India-Bimstec (Bangladesh, India, Myanmar, Sri Lanka, Nepal and Bhutan) free trade agreement to be implemented from July 1 2006 has to cross one last hurdle.
BIMSTEC finalizes dispute resolution rules
1-Jan-2006
Trade Negotiation Committee has finalized rules for settling disputes in BIMSTEC free trade agreement. It has, however, failed to converge on the percentage of value addition for rules of origin.
Nepal’s preparation still lackluster for fruitful SAFTA
26-Dec-2005 NewsLineNepal
Both government and private sector are showing lackluster preparation for implementing the South Asian Free Trade Agreement (SAFTA), even as the date is approaching for the formal enforcement of the agreement in Nepal.
Kenya, Sudan solve dispute
19-Dec-2005
Kenya and Sudan have sorted out differences over the compliance of Comesa rules of origin.
Japanese demand better standards
17-Dec-2005
Japanese fruit producers and exporters have called for their Thai counterparts to upgrade sanitary and food safety standards if they want to succeed in promoting Thai fruit consumption in Japan.
India may ink preferential trade pact with Mauritius
22-Sep-2005 Business Standard
India and Mauritius are likely to enter into a Preferential Trading Agreement before going for a Comprehensive Economic Cooperation Agreement (CECA).
SAARC committee of experts to meet on FTA issue
8-Sep-2005 Xinhua
The Committee of Experts of the South Asian Association for Regional Cooperation (SAARC) have decided to meet for yet another round and forward the outstanding issues of South Asia Free Trade Area (SAFTA) to political level for final decision, a Nepali government official said Wednesday.
Crucial FTA talks resume in Tokyo
23-Aug-2005
The free trade talks between Thailand and Japan are approaching a crucial step, with officials preparing to address the origin of products, the last and thorniest issue on the agenda.
BIMSTEC trade experts to settle FTA issues in July 2006
17-Aug-2005 Mizzima News
Trade experts of the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) are working on settling various issues pertaining to trade and investment in a bid to start a journey towards free trade area (FTA) among member countries from July 2006.
Deadlock on FTA with Thailand
12-Aug-2005
The high-level negotiating team from Thailand that visited New Delhi recently was unable to break the impasse on the India-Thailand free trade agreement.
Somkid: FTA with Japan hinges on rule changes for farm goods
12-Aug-2005
Commerce Minister Somkid Jatusripitak - under pressure from local businesses - yesterday assured them that the government would not sign a free-trade pact with Japan unless it is satisfied with terms concerning rules of origin for farm goods.
FTA fine print remains a big hurdle
2-Aug-2005
Bilateral free-trade agreements typically revolve around discussions of quotas and tariffs and the principle of market access for traders. But an even more crucial component is rules of origin. In the end, an agreement without clear, practical and fair rules is nothing but a can of food with no opener _ you know the food is in there, you just can’t eat it.